How to Write a Good Commodity Trading Plan
trading plan checklist - the following is a template examples of a commodity plan template example:
JUSTIFICATION
1. Commodities Trading IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS
- Businesses that are successful always begin with a plan.
- Successful business planning will guide you to success, think of commodity trade plan as a map: it's a constant reminder of how you will consistently pull profits from the commodities market.
- Difference between a successful trader & a losing commodity one is the commodity trade plan.
2. TO KEEP ME IN THE RIGHT DIRECTION when Trading Commodity
Consistency is important in your routine to measure how successful you're.
Keep you on target, read the commodity trade plan every day & stick to its rules.
When it comes to your plan you should think of it as a map that shows you this is what you follow, it should have clear rules which specify when you open or close a trade.
Your commodity plan should cover all aspects of commodity, you should read the commodity plan every day until it is on your fingertips so that when you are transacting on the fast moving market of commodity you'll always know what to do in every situation.
Your commodity plan can be as simple or as complicated as you like, but the most important thing is that you have one. By having a one you have an advantage over the commodity market, you'll have better odds of making a profit than those who do not have one.
This commodity plan checklist tutorial topic provides with an example commodity plan template that you can use for creating your own commodity trade. By now you have already written down the justification part of your commodity plan template, If not get a pen and paper and write the justification part. Next we shall look at how to write the system.
Commodity Trading plan is one of the secrets which can help you to improve your profits. A good commodity training guide like this one should show you how to come up with one using a commodity plan template which you can use as an example to develop your own commodity trade plan.
One of the most common asked question is, Is Commodity Trading profitable? one of the techniques to make it profitable is to have a good plan.
IF YOU HAVE A GOOD Commodities Trading PLAN AND ARE DISCIPLINED ENOUGH TO STICK TO ITS Rules When Commodities Trading, YOU WILL BE SUCCESSFUL.
GOALS OF THE TRADING SYSTEM
- Ability to IDENTIFY TREND AS EARLY AS POSSIBLE .
- Ability to AVOID WHIPSAWS .
The commodity trade system should find a compromise between the 2 Goals,
Find a way to identify a commodity trend as early as possible but also find ways to help you distinguish the fake trading signals from the real ones.
FUNCTIONS OF EACH INDICATOR
MA - Identify a new commodity trend as early as possible.
MACD - Identify a commodity trend as early as possible.
Determine strength of a continuing trend.
RSI - Swing failure to confirm the begin of a new commodities trend.
Extra confirmation tools to help determine the strength of our commodities trend.
Parabolic SAR - Help to ensure that we are not caught up on the wrong side of the trend.
Commodities Trend-Lines - Signals a reversal when the line is broken
Commodity Trading Price Action Signals - confirm the weakening of a trend.
Bollinger Band - for commodities trading price action study
To learn more about each indicator & how these technical indicators can be used to generate trading signal setups you can go to Technical Commodity Technical Indicators Section
CHART TIMEFRAMES
- Main timeframe is the 1H.
- Signals are generated on 15 minutes time frame.
15 Minutes Charts
- Commodities Trend-Lines (Support & Resistance)
- 5 & 7 LWMA
- RSI (14)
- Bollinger Bands (20, 2)
RULES
LONG ENTRY
Entry
15 Minutes Charts
- Both MAs are moving UP
- MACD moving UP
- RSI >-> 50
- Parabolic SAR is below the commodities trading price ( Support )
When signal is generated on the 1 Hour Commodity Trading Chart, use the 15 minute commodity chart time frame to open and close positions.
LONG EXIT
- RSI gives opposite signal
- Commodities Price breaks Support Commodities Trend Line
- Parabolic SAR is hit (Trailing Stop)
RULES
SHORT ENTRY
Entry
15 Minutes Charts
- Both MAs are moving DOWN
- MACD moving DOWN
- RSI <-< 50
- Parabolic SAR is above the commodities trading price ( Support )
When signal is generated on the 1 Hour Chart, use the 15 minute commodity chart time frame to open and close trade positions.
SHORT EXIT
- RSI gives opposite signal
- Commodities Price action breaks Support Commodities Trend Line
- Parabolic SAR is hit (Trailing Stop)
ROUTINE
- Signals are generated using 1H commodity chart time frame and executed using the 15 minute commodities chart timeframe.
- Trading signal to be executed immediately trading rules are met.
- Entry alert signals should be executed during daytime.
TIME OF DAY TO WATCH MARKET - MARKET HOURS
Watch market during daytime when most companies & online commodity brokers are open for trades. Use this to create a suitable program.
Example Trading Plan Template
Tips - You can use the MT4 Commodity Trading Software to save this as a commodity template that way you don't have to lay it afresh every time you open a new commodity chart. If you want to learn how to save a commodity plan template on the MT4 platform, read: MT4 Commodities Platform Tutorials.
Commodity Money Management
- Day trading - Low risk High return technique
- Trade when I have a high risk:reward ratio 3:1 or more
- Stop loss = Parabolic SAR
- Set TP target 40-60 Commodity Trading Pips
- Never transact beyond Three % of account equity
- Never risk more than 2% on a single commodity trade transaction
Commodity Trading MINDSET/PSYCHOLOGY
- Trade without Emotions (greed, fear, impulse, bias, anticipation, overexcitement)
- I trade what my eyes see not what I feel.
- I will be patient.
My job is not to be the commodity system!
It is not to decide which signal looks promising.
That is the job of my commodity system - which has a set of commodity rules which tells me this is what I follow. Do not get caught up in commodities trading price action & make rules as you go along.
MY JOB DESCRIPTION IS
To sit patiently and wait for my commodity strategy to indicate that it is time to enter or it is time to exit. And then with great focus I execute commodity plan as outlined.
Taking trades not indicated by the commodity system, second guessing it and not taking signals given, hesitating and getting in late, anticipating and getting in early are all common place and boil down to lack of faith in the plan and not having a burning focus on accurate execution.
GOAL: To have 100% undivided focus on mastering my ability to execute my Commodity Trading rules accurately.
More you develop the ability to step back from commodities trading price movement & watch the commodity market dispassionately, waiting for a commodity signal, the easier it will be to witness the fluctuations of your emotions without getting sucked into them allowing them to throw you off your game.
WEAKNESS
- I am greedy.
- I over-trade
- Make a list of all your weaknesses that are interfering with your trading. This is the first step to help you overcome these weaknesses. Use Commodity Trading psychology to help you overcome them.
NB: by writing down your weaknesses you will begin recognizing them as you make progress, once you do this you'll start to avoid this mistakes & your results will improve.
GOALS
- To focus on exit just as much as I do on entry signals.
- Always protect my account using stop loss, commodity money management techniques, follow with the commodity trend direction & always following the trading rules of my commodities trading strategy.
- Never second guess or go against my trading strategy. To always keep up my discipline.
- Follow all the rules of my commodities strategy and never break them.
- Transact fewer times & execute all my signals correctly. Trade what I see, what the system + commodity charts are telling me.
- Sit patiently and wait for signals from my strategy.
- Achieve consistent commodity results before opening a live commodities account.
FOLLOW THIS Commodity Trading SYSTEM
This is the most important part of creating the commodity system.
Always follow the trading rules
Stick with the trading rules
Be disciplined & patient enough
Commodities JOURNAL
Log all my trade transactions in a commodity journal so as to track my training progress & improve my commodity execution trading methods.
This commodity strategy uses momentum to figure out the commodity trend of any commodity.
Even if you are new to commodities trading market & you do not know how a commodity system looks like, this commodity system template example illustrates to you how a commodities trading strategy should look like, the Commodity Trading guides described in other sections of this training website will also explain further different aspects that you need to learn.
Hence, the objective is to help you create your own complete commodity strategy that is if you are looking for one, by showing you one that is already complete. In fact you can just use it as it is, or make a few adjustments so that it suits your commodity style.
The aim is to help you improve your commodity results by using a commodity plan, and another advantage is that this commodity trade plan will offer you a chance to improve your knowledge and it will help you improve your commodity results and help you make pips when commodity and keep them so that you do not keep giving them back to the commodities market.
Read this commodity plan training guide about developing a commodity trade plan of your own, along with learn commodity courses and commodities trading strategies listed at the tops of this learn commodity tutorial web site.
The Most Beneficial part of using this commodity plan template is the "Commodities Trading Money Management Part" you'll learn how to trade commodities trading and minimize risk, which is the most important thing when it comes to trading the commodities market.
Commodity Trading Plan Checklist - How to Develop a Trading Plan in Commodity Trading - Commodity Trading Plan Example - Commodity Trading Plan Doc
